How Not To Be Short Of Cash While On Overseas Trip

Travel is wonderful, and many of us would do nothing but travel the globe if we had the means to live that kind of jet-set life. And traveling to the far corners of the world is growing increasingly easy, with the Internet to connect us to friends and work while we are away and with major transportation centers like airports and railway stations all over the map. We can book reservations and go to even the most far-flung places that have names that we can barely pronounce. But travel requires spending money, and unless we have safe and secure ways to carry money with us when we globe-hop, we can find ourselves in a world of trouble.

Here are some different to fund your holiday.

Traveler's Checks

Travelers used to rely upon traveler's checks as the best way to carry money abroad, but in recent years this method has become somewhat cumbersome. Rules governing reimbursement have tightened to prevent fraudulent claims, and although traveler's check companies claim that they will get money to you anywhere, anytime, with emergency speed, the reality is that many travelers find themselves stuck with no cash, and lost or stolen traveler's checks are not reimbursed for months. And then they are only refunded or reimbursed after the consumer fills out pages of documents and makes many long and sometimes frustrating phone calls. Although there are still some good traveler's check companies, many travelers complain that customer service and speedy reimbursement are lacking.

It is wise not to carry large amounts of cash. You should take most of your money in traveler's checks and remember to record the serial number, denomination and the date and location of the issuing bank or agency. Keep this information in a safe and separate place so, if you lose your traveler's checks, you can quickly get replacements. You will receive a better rate of exchange at a local bank than at your hotel.

Credit/Debit Cards

A better and more dependable idea is to carry a bank card, like an ATM or credit card. Because most financial networks subscribe to the same ATM machine systems, your card will be compatible with automated cash machines throughout the world. All you have to do is take one piece of plastic with you, and your bank account is only a PIN number away. Of course you may find yourself in a place where there are no machines, or where you card does not work, but in general this is a good way to carry money overseas. Experts recommend that you plan ahead, and open a special bank account for your overseas travel. Use the ATM card connected to that account, and only deposit enough money to cover your travel expenses. That way, if your card is stolen and misused, thieves will not be able to clean out your life's savings.

Some credit cards can be used worldwide, even for cash advances. Keep track of your credit card purchases so that you do not exceed your limit. Travelers have been arrested overseas for mistakenly exceeding their credit limit! Leave all unnecessary credit cards at home. Record the numbers of the credit cards that you do bring, and keep the list separately from the cards.

You should immediately report the loss or theft of your credit cards or traveler's checks to the credit card companies and to the local police. If you plan to stay in one place for some time, you might consider opening an account for check cashing and other transactions at a U.S. bank that has an overseas affiliate. U.S. embassies and consulates cannot cash checks for you.

Before leaving on your trip, you may wish to check with your bank to see if the country or countries that you plan to visit have Automated Teller Machine (ATM) service. The bank should be able to tell you if you can use your ATM card during your trip abroad.

To back up your ATM card in case you aren't able to use it somewhere, carry enough cash - either in dollars or in the currency of the place you are traveling - to tide you over for a few days at a time. You can also use most credit cards and a passport to withdraw cash from foreign banks, but you may have to pay pretty steep fees for the convenience.

Let your credit/debit card company know that you will be using your card overseas. Otherwise, they may block access. Debit cards are preferred over credit cards due to the account limitations. Be aware that cards can be skimmed and identities stolen. Safeguard your plastic at all times.

Prepare for Emergency Funds

It is a good idea to keep the telephone number for your bank in the United States with you, in case you run out of cash and need to transfer money. In some countries, major banks and certain travel agencies can help arrange a transfer of funds from your account to a foreign bank. If you do not have a bank account from which you can obtain emergency funds, you should make arrangements in advance with a relative or friend to send you emergency funds should it become necessary. If you find yourself destitute, contact the nearest U.S. embassy or consulate for assistance in arranging a money wire transfer from a relative or friend in the United States.

Foreign Currency

Before departing, you may wish to purchase small amounts of foreign currency to use for buses, taxis, phones, or tips when you first arrive. Foreign exchange facilities at airports may be closed when your flight arrives. You can purchase foreign currency at some U.S. banks, at foreign exchange firms, at foreign exchange windows, or even at vending machines in many international airports in the United States. Be aware that you will get the worst rates possible exchanging currency in your home country.

Some countries regulate the amount of local currency that you can bring into or take out of the country; others require that you exchange a minimum amount of currency. For currency regulations, check with a bank, a foreign exchange firm, your travel agent, or the embassy or consulate of the countries that you plan to visit.

If you leave or enter the United States with more than $10,000 in monetary instruments of any kind, you must file a report, Customs Form 4790, with U.S. Customs at the time. Failure to comply can result in civil and criminal proceedings.

As always, it is highly recommended that you leave copies of all your important documents, including your bank cards, in a safe place. If yours are lost, you can use the copies to help file claims to replace them.